UK Growth Figures

Ian Kernohan

28 July 2015

UK GDP grew by 0.7%* in the second quarter. Early estimates of GDP are often subject to revision at a later date and I suspect the number will be revised up. However, this data provides the Bank of England with a snapshot of economic activity, ahead of its Inflation Report next month. In recent weeks the Monetary Policy Committee has been signalling a more hawkish tone, as the economy continues to grow at a reasonably rapid rate. Looking at wage trends in the UK, it is clear that fears of deflation have been greatly exaggerated, and contrary to the prevailing consensus, I still expect a rate hike before the end of this year.

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